Medical bankruptcy happens to individuals and it happens to hospitals too. The situation that this rarely visited rural California county is the same as individuals go through when trying to get out of debt. The cycle goes like this: Bills add up and you try to pay all of them by borrowing from other funds (in the case of individuals, it would be credit cards and home equity) – then when you get so far over your head by paying your bills the wrong way, you have to then get loans to pay off loans and they cycle continues. Check out this article and see if it is similar to what you are going through right now….

The county's predicament became widely public last month with the loan requests. The largest, $12.5 million, would enable the county to repay money it has improperly borrowed from other county accounts to keep its hospital afloat. The money was meant for other purposes — such as roads and education projects, and borrowing it was a violation of state law, according to the state controller's office.